Oyo clocks first profitable year in FY24 with Rs 100 crore net profit

Oyo CEO Ritesh Agarwal announced that the hospitality sector firm, has made its first-ever annual profit of Rs 100 crore for the fiscal year 2023-24 in a post on X.

“We had our maiden net profitable financial year at nearly Rs 100 cr. This was our eighth consecutive quarter of a positive EBITDA and we also have a cash balance of about Rs 1000 cr,” said Agarwal on X.

Agarwal mentioned that the period from January to March marked the eighth consecutive quarter of positive Ebitda (earnings before interest, taxes, depreciation, and amortisation), along with a cash balance of approximately Rs 1,000 crore.

However, he clarified that these figures were provisional.

He added that the global credit rating agency Fitch has acknowledged Oyo’s improved performance and strong cash flows by upgrading its credit rating. “The global credit rating firm Fitch has also taken note of our improved performance and strong cash flows, upgrading our credit rating,” he said.

Established in 2012 and backed by SoftBank, Oyo is yet to submit its audited financial statements for the fiscal year 2023-24. Agarwal expressed optimism about future growth, citing emerging travel trends not only in India but also in key markets like Nordics, South East Asia, US, and UK.

These trends include premiumisation, spiritual travel, business travel, conferences, and destination weddings. Although Agarwal did not disclose the revenue figure for 2023-24, it was reported by ET earlier that Oyo’s revenue for the year amounted to approximately $700 million (about Rs 5,800 crore).

In contrast, for the fiscal year 2022-23, the company reported a net loss of Rs 1,287 crore, which was a decrease of 34% from the previous fiscal year. Its revenue from operations stood at Rs 5,464 crore. Oyo recently withdrew its draft application for an initial public offering (IPO) with the Securities and Exchange Board of India.

Instead, it is seeking to raise funds from investors at a considerably lower valuation. Although the specifics of the funding round are yet to be finalised. Media reports suggest that Oyo aims to raise $70-80 million (about Rs 600 to Rs 650 crore).

Agarwal had previously informed the company’s employees in February about Oyo achieving Rs 30 crore in net profit during the third quarter of 2023-24, following its maiden profit in the second quarter.